Reviewing Volkswagen (OTCMKTS:VWAGY) and Kaixin (NASDAQ:KXIN)

Kaixin (NASDAQ:KXIN) and Volkswagen (OTCMKTS:VWAGY) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Insider and Institutional Ownership

2.0% of Kaixin shares are held by institutional investors. 20.8% of Kaixin shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Kaixin and Volkswagen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaixin	1	0	0	0	1.00
Volkswagen	0	5	1	1	2.43

Valuation and Earnings

This table compares Kaixin and Volkswagen”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaixin	$31.53 million	0.00	-$40.97 million	N/A	N/A
Volkswagen	$351.35 billion	0.17	$12.28 billion	$1.43	8.46

Volkswagen has higher revenue and earnings than Kaixin.

Risk and Volatility

Kaixin has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Volkswagen has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Profitability

This table compares Kaixin and Volkswagen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kaixin	N/A	N/A	N/A
Volkswagen	1.99%	3.26%	1.01%

Summary

Volkswagen beats Kaixin on 10 of the 12 factors compared between the two stocks.

About Kaixin

Kaixin Auto Holdings primarily engages in the sale of domestic and imported automobiles in the People's Republic of China. It focuses on automobiles brands, such as Audi, BMW, Mercedes-Benz, Land Rover, Bentley, Rolls-Royce, and Porsche. The company is headquartered in Beijing, the People's Republic of China.

About Volkswagen

Volkswagen AG manufactures and sells automobiles in Germany, other European countries, North America, South America, the Asia-Pacific, and internationally. The company operates through four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars and Light Commercial Vehicles segment engages in the development of vehicles, engines, and vehicle software; produces and sells passenger cars and light commercial vehicles, and related parts; and offers motorcycles. The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services. The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components. The Financial Services segment provides dealership and customer financing, leasing, direct banking and insurance, fleet management, and mobility services. It sells its products under the Volkswagen Passenger Cars, koda, SEAT/CUPRA, Volkswagen Commercial Vehicles, Audi, Lamborghini, Bentley, Ducati, Porsche, Scania, MAN, Volkswagen Truck & Bus, Navistar commercial vehicles, and Bugatti brands. The company was founded in 1937 and is headquartered in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.